State Planner Gives Thumbs-Up to Unicom’s Mixed-Ownership Plan
Wireless carrier Unicom Group said it is negotiating with potential investors after officially becoming the latest state-owned enterprise (SOE) opened to private capital under a Chinese government pilot program to overhaul the bloated sector.
By allowing mixed ownership in seven state-backed behemoths, including Unicom Group, Beijing hopes to ultimately boost the efficiency and competitiveness of more than 150,000 lumbering SOEs with the help of non-state actors.
In a statement filed with the Hong Kong Stock Exchange late Monday, China Unicom (Hong Kong) Ltd. said Unicom Group, China Unicom’s unlisted parent, has recently obtained approval from the National Development and Reform Commission (NDRC), China’s top economic planner, to launch the mixed-ownership reform.
The shares to be sold to private investors will be non-publicly traded A-shares of Unicom Group’s Shanghai-listed unit, China United Network Communications Ltd., the statement added.
“The concrete implementation plan of the non-public share issuance of Unicom A-Share Company, including the identities of the investors, pricing term, investment amount and percentage of shareholding, etc., still needs to be reported to and approved by the relevant ministries in accordance with the relevant requirements before implementation,” the statement said.
Unicom’s mainland A-shares have been suspended from trading since April 5 when the company announced its reform plan. Shares of the Hong Kong unit, which are still trading, have gained 6.8% during the same period.
Unicom Group has partnerships with all three of China’s top three internet companies, leading many to speculate its final partner choice could be Alibaba Group Holding Ltd., Tencent Holdings Ltd. or Baidu Inc. Some of these internet giants were also rumored to be picked as private partners by China Railway Corp., another SOE in the same pilot program.
Apart from telecommunications, six other sectors picked by the NDRC for the pilot program include power, crude oil, natural gas, railways, civil aviation and defense.
Alongside mixed ownership reform, China is also pushing ahead with mergers among SOEs, particularly in the power, steel and shipping sectors, which are plagued by overcapacity.
In 2016, China shut down or phased out 2,730 SOEs, which saved nearly 5 billion yuan ($740 million) in management costs, Xinhua reported in April.
Contact reporter Aries Poon (email@example.com)
Nov 30 06:34 PM
Nov 30 05:59 PM
Nov 30 05:39 PM
Nov 30 03:06 PM
Nov 30 02:16 PM
Nov 26 05:21 PM
Nov 27 07:07 PM
Nov 27 07:03 PM
Nov 27 05:24 PM
Nov 27 05:13 PM
Nov 27 05:03 PM
Nov 27 11:14 AM
Nov 26 06:42 PM
Nov 26 06:07 PM
Nov 26 05:21 PM
- 1Ant Group Cleared to Sell $3 Billion of Asset-Backed Securities
- 2Gallery: Off to the Moon
- 3Gallery: Chinese Fans Mourn Soccer Legend Diego Maradona
- 4Gallery: Smart Trash Cans and Delivery-Bots on Show at Internet Expo
- 5China Tightens Rules for Scandal-Hit Trust Sector Amid Campaign to Contain Risks
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas